Posted by Ron Waits on January 27, 2001 at 13:53:50:
Hi Brad - as a rule, and I haven’t broken it as yet, I never tell the seller what I am doing with the property, i.e., the MH. If you give too much information you could lose a deal, it’s just as easy for the seller to sell on time as it is for you, so I just never tell them, for what’s it worth.
Good luck, I hope you cinch the deal and the seller’s aren’t smart enough to grab an opportunity.
Ron
Need Advice(long) - Posted by Brad Yohey
Posted by Brad Yohey on January 27, 2001 at 13:29:09:
Hello,today I went and looked at a 1974 14x70 MH that has been sittting empty in a park for about 1 year. I have called the realtor who has it listed several times over the last 6 months and the price has went from $11,500 down to $9,000(way to much). At the showing today she said that the owners are tired of owning it and would listen to ANY offer, they’ve had people that have wanted to buy it but they cannot get financed by the banks. So here is where I think I made my mistake, I told her that I could pay no more that $2500 and that I planned to buy it and resell with owner financing, she said she would talk to the owners about my offer. My concern is that I probably said to much and that she will now give the owner the same idea and I’m out of a deal.Should I let the realtor or homeowners know what my plans are? Any advice would be helpful. Sorry so long.
Thanks,
Brad
Re: Need Advice(long) - Posted by Tony-VA
Posted by Tony-VA on January 29, 2001 at 06:20:32:
I would not worry much about it this time. As Ron wrote, we try never to name numbers first or talk too much. Asking questions is where we get paid.
However, there are times when we do make exceptions. In this case, the Realtor is not likely to run out and seek to owner finance this home. The Realtor and the current owner have seen how hard this home is too sell and neither is likely to want any part of it.
I would sort of look at this deal as if I were buying a Repo from a lender. Make a lowball offer I feel certain I can make money with and send it in.
A few things can happen. The Realtor will likely return with a counter offer and you are off the hook. Tell the Realtor that $2500 was the highest you would go. Hand them your card and as you walk away mention to give you a call if something changes. Let her know that you are off to look at other homes. Chances are since you were the only hot lead they have had, they will call back with your numbers. You may even say, well I have purchased other investments since you rejected my offer. (Snooze you loose) Then turn the table and ask if you were to bring them CASH today, what the best cash price would be? If they don’t go lower, use the walk away technique again.
Now if they accept your first offer of $2500, do your ‘due diligence’ and make certain there are no liens, the lot rent is current, the home can stay on the lot etc. If it all checks out, stick to your word and do the deal. Credability is essential to good business, in my opinion. This is also why, when making low ball bids, it is so important to name a number that you feel is a homerun should you win the bid.
Tony-VA